If your business uses vehicles- company-owned trucks, leased vans, or employees driving their personal vehicles for work, commercial auto insurance is required. Personal auto policies typically exclude business use, which can leave your business completely exposed after a work-related accident.
What is commercial auto insurance?
Commercial auto insurance covers vehicles used for business purposes. It includes liability, physical damage, medical payments, and uninsured motorist coverage and can be written for owned vehicles, hired vehicles (rented or leased), and non-owned vehicles (employee-owned vehicles used for work).
Why you need it:
- Personal auto policies exclude most business use
- Required by Texas law for vehicles registered to a business
- Required by lenders for financed commercial vehicles
- Covers vehicles used for deliveries, service calls, and sales
- Hired and non-owned auto coverage protects against employee-vehicle exposures
What it typically covers:
- Liability for bodily injury and property damage
- Collision and comprehensive on owned vehicles
- Hired auto liability and physical damage
- Non-owned auto liability (employee personal vehicles)
- Uninsured / underinsured motorist coverage
- Medical payments
Frequently asked questions:
Do I need commercial auto if I only use my personal vehicle for work?
Often yes. Most personal auto policies exclude business use beyond simple commuting. At minimum, your business should carry hired and non-owned auto liability.
How is commercial auto rated?
Premiums depend on vehicle type and use, driver records, radius of operation, gross vehicle weight, cargo, and prior claims history.
Does commercial auto cover cargo?
Standard policies cover the vehicle, not the cargo inside. Cargo coverage is a separate endorsement or policy.